Resonate, a leading advertising technology company focused on values marketing, today announced that it will use more than $20 million in new funding from Revolution Growth and other investors to accelerate its business, including the launch of a breakthrough Big Data tool for political campaigns and corporate marketers. Revolution Growth Co-Founder Ted Leonsis will join Resonate's Board and help lead the company's new efforts.
Resonate's Series A investors, Greycroft Partners, LLC and iNovia Capital, are also participating in the new financing round.
Founded in 2008, Resonate has already pioneered a new model for reaching online audiences and connecting consumers with advertising that interests them on both politics and products. Resonate's unique approach goes beyond traditional targeting criteria such as demographics and interests. Political campaigns, advocacy groups, and major corporations will now have expanded offerings from Resonate to target their ad campaigns based on viewers' otherwise unidentifiable values such as patriotism, environmentalism, taste for luxury, or interest in innovation -- and many more such values attributes.
Additionally, with backing from Revolution Growth, Resonate will bring to market a new product that will enable corporate chief marketing officers and campaign managers to employ Resonate's Big Data to understand, for the first time, the values and beliefs that are drawing customers and voters online. These new profiles will allow campaigns and companies to target their advertising and communications efforts with unprecedented precision; they will be able to understand interested consumers and likely supporters with insights previously unavailable.
"Social media has changed how marketers listen to their customers. But Resonate is ready to deliver something that Twitter and Facebook cannot: values-based insights into why consumers buy what they buy, and why voters back the candidates they support," said Revolution Growth Co-Founder Ted Leonsis. "Take it from someone who has been involved with online advertising since its creation: the potential to hand that understanding to campaign strategists and corporate CMOs -- and make it actionable -- is transformative."
"Savvy marketers don't need more data. They need breakthrough insights into why people act and why they don't," said Bryan Gernert, CEO of Resonate. "Resonate delivers unprecedented insights uniquely based on consumers' values. We've proven we can make them actionable with online media; now we are changing the game. We're excited that Revolution Growth recognized the disruptive potential of this set of capabilities, and has provided us with the capital and expertise to help us capitalize on this opportunity."
Resonate will use the funding to accelerate its go-to-market plan for this new offering, as well as expand the capabilities of its existing proprietary consumer intelligence platform. Resonate's timing is prime for political campaigns and advocacy groups to employ its technology during the critical 2012 election year.
Leonsis added: "Algorithms and technology platforms are revolutionizing how advertisers crunch numbers and use Big Data; but consumers are people, and understanding psychographics -- what people are thinking and feeling and tailoring messages and campaigns to authentic values -- is a breakthrough, differentiated idea. It's good for consumers, good for voters, and good for the campaigns and companies trying to reach them. Resonate's founding team are well-known entrepreneurs who have a proven track record of success. I am excited to bring Revolution Growth's backing and resources to support Resonate as it expands and transforms."
Revolution Growth is a private investment fund founded in 2011 by AOL Co-Founder Steve Case, former AOL Vice Chair Ted Leonsis, and Donn Davis, former President of AOL Interactive Properties Group and President of Tribune Ventures. Leonsis will join Resonate's board of directors, and lead Revolution Growth's work with Resonate.
As member of the Resonate board, Leonsis brings more than two decades of digital media and global Internet service experience. He is a nationally renowned entrepreneur, investor, and business-builder who sits on the Boards of Directors of leading companies, ranging from American Express to Groupon. Leonsis spent 13 years working closely with Steve Case to build AOL into the world's leading and most recognized Internet company. While at AOL, he oversaw the acquisition and integration of Advertising.com, one of the company's most significant acquisitions in the advertising space.